Ask Question
13 May, 03:27

Unearned Rent Revenue is

A. a revenue account.

B. reported as a current liability.

C. a contra account to Rent Revenue.

D. debited when rent is received in advance.

+4
Answers (1)
  1. 13 May, 03:42
    0
    The correct answer is option B.

    Explanation:

    The unearned rent revenue will be reported as a current liability. The reason behind this is that unearned revenue is prepaid revenue or advance payments for goods or services that the firm has to provide in the future.

    Unearned revenue is a liability because the goods or services are yet to be provided and there is a chance that the order might get canceled, or seller might not be able to provide to them.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Unearned Rent Revenue is A. a revenue account. B. reported as a current liability. C. a contra account to Rent Revenue. D. debited when ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers